Problem in Hosting WCF Service using wsHttpBinding in IIS?

This is propabely because on the IIS the account settings are different from the account that you are using to run a local server.

Based on the exception report, it sounds like one of two things may be happening. The certificate you are referencing was either installed into the keystore with only the public key, or the installed certificate is restricted and the account your application pool is running under does not have permission to access the key.

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